Technical Forecast for US and Euro Stock Markets
EuroStoxx held Monday’s low of 2612 and beat recent highs at 2637/41 to test 2651. We topped just above at 2655 but we are building a base now so we should break higher through 2661 for 2671 and quite possibly 2690. Sell in to shorts here as we look for a high for the day, with a stop above 2700.
Support at 2628/26 could hold any weakness but below here 2612/10 should be seen again. If we hold here then we have the bullish reversal pattern is still intact & we should head higher in to the end of the week. A move below 2597 however risks a retest of 2589/83 lows. This remains good support a second chance to buy in to medium term longs in the hope of a double bottom, with a stop below 2564.
FTSE beat resistance at 6248 and made it to our upper target of 6291 as we topped at 6304.
We are starting to look over bought in the short term. If we cannot get through 6304 a dip back to 6273 support may hold this morning’s low but below here 6254 is the next target where we expect a low for the day. Longs need a stop below 6239 for 6224.
A push through 6304 closes a gap at 6314 then above here we can test the 6323 highs. Exit longs & try shorts with a stop above 6335 for 6359 then 6396.
Dax futures pretty much traded Monday’s range holding 7660/70 resistance. We may see a pullback today with 7619/12 our first support. Below here we have this week’s lows at 7596/92 which may provide a floor again. However below 7565 look for excellent support at 7536/26 which is very likely to hold the downside so we will be exiting any shorts and buying in to longs. Stops below 7500.
A break through 7680 today targets 7700/12 where we may top out for now. However above here 7734 is a good target to exit remaining longs & try shorts looking for a top in the early part of the week.
S&P edged higher through 1517 reaching 1519. A push through here takes us towards 1521 later in the week and eventually 1527.
Good support at 1512/11 today could mark the low but below here look for 1508, possibly 1505/04 which should hold a slide today. However 1501 should be a good buying opportunity with stop below 1498.